The Coronavirus, public debt and life

Defeating the capitalist system and transforming society

30 March by Lujan Miranda


Some questions for our initial reflection!
What virus is this that causes so much dread, destruction and death?
What system is this that causes so much insecurity, greed, destruction and death and allows a virus to panic and quarantine a large part of the planet’s population? What debt is this that the more you pay the more it grows, benefiting bankers and big businessmen, to the detriment of the population and the entities of the Federation (Union, States and municipalities)?
What debt is this that causes so much pain, suffering, misery, destruction and death?

As Marx and Engels stated in the Communist Manifest in 1848, “The modern government is nothing but a committee to manage the common affairs of the entire bourgeois class”.

We are going through dramatic moments on our planet, which put the capitalist system in check and question its values, throwing neoliberal globalization into the air. A brutal crisis that broke out in the United States in 2008 and that led several countries around the world, especially in the last period in our continent, to massive demonstrations in the streets, as in Ecuador, Chile, Haiti and Colombia, for example.

Coronavirus, which causes the respiratory disease known as Covid-19 (Coronavirus disease 2019), is demonstrating to the world that “everything that was solid and stable vanishes, everything that is sacred is desecrated, and men are forced to finally face with serenity their conditions of existence and their reciprocal relations ”, as stated by Marx and Engels in that manifest 172 years ago.

The Coronavirus has opened up national and international reality and proved that the capitalist system is not the way out for mankind.

Thanks to its health system and the tenacity of its people, China has managed to free itself in a spectacular way and now pays solidarity to different countries in the world. The same solidarity it received from the Cuban people.

It is noteworthy that in terms of solidarity, nobody surpasses Cuba, which, despite all its difficulties resulting from the American blockade, did not close its borders and at the request of the United Kingdom and Ireland, for humanitarian reasons, received British Cruise Ship, MS Braemar, with five confirmed coronavirus cases and more than 1,000 passengers on board.

It also exposed, even more, rulers like Bolsonaro and Trump, who attack health, science and technology, contributing to planetary chaos.

After publicly mocking the coronavirus, in an irresponsible and inhumane attitude, at dinner in the United States, Trump and Bolsonaro were forced to confront it in their countries.

In the United States, the big problem is that there is no public health and in Brazil, it is that the SUS (Unified Health System), an example of public and state health, has been destroyed by government officials, who have been doing everything to end with health, social security and social assistance once and for all, to benefit the private sector, through outsourcing, privatization, the freezing of social spending and investments for 20 years, and constitutional reforms, among other measures.

To feed the Debt System, which transformed the public debt into an instrument for transferring the population’s money to bankers and for absurd debt growth, without the population gaining anything in return, except the duty to pay it.

It is in dramatic moments that the true face of the capitalist system is seen!
They say that no country in the world is prepared to test its entire population. But the truth is that because they do not have a public and universal health system, they do not invest enough in science and technology and because they have not taken seriously what was informed by China and recommended by the World Health Organization – WHO, countries are not able to serve even the portion of the population that presents symptoms of the coronavirus.

Once again, the real concern is to save the capitalist system and not the people. If the objective were to save people, it would be enough to suspend the payment of the public debt or use the 4 trillion that Brazil has in cash and international reserves.

With the population’s money, governments help the great capitalists (bankers, major businessmen and landowners) and try to alleviate and remedy - sometimes in a real farce - the drastic situation of people who live in the worst situations: on the streets, in prisons, jobless, with precarious housing, without sanitation, without the minimum conditions of healthy living.
In Brazil, instead of suspending the payment of the public debt, which has never been audited, and using the 4 trillion reais it has in Caixa do Tesouro, the Central Bank Central Bank The establishment which in a given State is in charge of issuing bank notes and controlling the volume of currency and credit. In France, it is the Banque de France which assumes this role under the auspices of the European Central Bank (see ECB) while in the UK it is the Bank of England.

ECB : http://www.bankofengland.co.uk/Pages/home.aspx
and international reserves (auditoriacidada.org.br), the Government prefers to inject money at banks that have made record profits over record profits every year.

Initially, the government announced 161 billion reais for bankers. However, the Central Bank has already announced the availability of 1.216 trillion for banks (istoe.dinheiro.com.br). So, only crumbs are left for people who are in even greater difficulty, for not having any kind of social assistance and, discouraged, no longer having the strength or spirit to look for a job, as well as for those who live in informality. For these people, the government will allocate only 15 billion, in 03 monthly installments, with values ranging from 89 to 205 reais.

In this moment of panic, when the importance of public health and education stands out, the government and parliamentarians want to attack public services even more.

Demonstrating all its inhumanity, the Bolsonaro Government, with banker Paulo Guedes at the head, tries to take advantage of the insecurity and great fear to which the population is subjected, to approve its measures presented on 11/05/2019, under the name of Plano Mais Brazil (proposed constitutional amendments 186, 187 and 188).

These measures aim to do just the opposite: reduce mandatory spending, such as resources for health and education, end public funds and transfer money to pay the public debt and change the rules of the Federative Pact, so as to make municipalities and states still more dependent, controlled and submitted to the Government on duty (https://auditoriacidada.org.br/video/fattorelli-comenta- plano-mais-brasil/).

A plan that should be called Menos Brasil (Less Brazil) for the Brazilian population and Mais Brasil (More Brazil) for bankers, major businessmen and landowners. In addition, they also want to approve the Administrative Reform, which aims to end the public service, which means fewer hospitals, fewer schools, more insecurity, etc. In short, leaving the Brazilian population at the mercy of the education, health and safety mercenaries.

While we go to our windows and balconies to applaud health professionals who, despite taking all the risks and facing the human drama, dedicate themselves to saving lives and preventing the population from becoming ill, the government wants to reduce the working hours and wages of public servants by 25% in the face of any emergency and dismiss them for poor performance (PEC 186).

Before that, taking advantage of the situation of the state of calamity decreed until 12/31/2020, the government, through Provisional Measure 927, of 03/22/2020, among other attacks, authorized in art.18, private companies to suspend employment contracts for up to 04 months, so that male and female workers can take courses or professional qualification programs, without receivithetheir wages. An illegal, inhumane and absurd measure that the president himself, after signing and publishing it, stated on his Twitter page that he ordered the repeal of this article. The revocation occurred through the reissue of provisional measure 927.

But, according to what has been reported in the press, they are already preparing a new measure that will maintain the suspension of employment contracts, with the payment of unemployment insurance, whose values are quite low. Earlier, they even announced a provisional measure or bill that halves the value of wages and working hours while the calamity is in force. Meanwhile, they were already propagating in the media that this measure should also be applied to public servants.

While aiding major businessmen and calming them with announcements of measures that favor them, the government tries to remove public and private sector workers. This is a demonstration of how inhuman and rotten the capitalist system is. Inhumane and at the service of those in power in our country.

Defeat the capitalist system and transform society

The coronavirus demonstrates that the justifications for the attack on social rights have fallen apart; that social responsibility should be above fiscal responsibility; that nationalization and re-statation should be above privatization; that public resources should be at the service of the population, not of bankers; that Constitutional Amendment 95, the Fiscal Responsibility Law and the Kandir Law must be repealed; that entrepreneurship, SO’s (social organizations), outsourcing and privatization do not provide either security or a dignified life, nor do they guarantee basic labor and social rights.

The speeches that labor, social security and administrative reforms would be the salvation of the country were nothing but lies by governments and the mainstream media in recent decades, in particular from 2014 until now. They wiped out strategic companies, state-owned banks, closed schools, outsourced and privatized hospitals, delivered our financial and natural wealth; they placed the country’s security in the hands of the United States (with the Amazon surveillance system and the delivery of the Alcântara Base) and threaten sister countries.

This system operated by BIS Bank for International Settlements
BIS
The BIS is an international organization founded in 1930 charged with fostering international monetary and financial cooperation. It also acts as a bank for central banks. At present, 60 national central banks and the ECB are members.

http://www.bis.org/about/
is indefensible!

Globalization, in fact, never existed for peoples. How many Africans and Asians, including children, have died in the seas in recent years, prevented from coming to European countries, especially Italy? How many Latin Americans and Caribbeans have died trying to jump over the wall that separates the United States from Mexico? If the numbers have declined, it is because Mexico is forcibly taking on the role of preventing them from approaching the United States.

The globalization that actually exists is only about money, thanks to the policy defined and applied by the BIS (Bank for International Settlements), known as the Central Bank of Central Banks, through the IMF IMF
International Monetary Fund
Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.

http://imf.org
, World Bank World Bank
WB
The World Bank was founded as part of the new international monetary system set up at Bretton Woods in 1944. Its capital is provided by member states’ contributions and loans on the international money markets. It financed public and private projects in Third World and East European countries.

It consists of several closely associated institutions, among which :

1. The International Bank for Reconstruction and Development (IBRD, 189 members in 2017), which provides loans in productive sectors such as farming or energy ;

2. The International Development Association (IDA, 159 members in 1997), which provides less advanced countries with long-term loans (35-40 years) at very low interest (1%) ;

3. The International Finance Corporation (IFC), which provides both loan and equity finance for business ventures in developing countries.

As Third World Debt gets worse, the World Bank (along with the IMF) tends to adopt a macro-economic perspective. For instance, it enforces adjustment policies that are intended to balance heavily indebted countries’ payments. The World Bank advises those countries that have to undergo the IMF’s therapy on such matters as how to reduce budget deficits, round up savings, enduce foreign investors to settle within their borders, or free prices and exchange rates.

, G10 (General Loan Agreements), Basel Committee and Central Banks of 192 countries.

BIS has existed since 1930 and its owners are 60 of these central banks (associated central banks), the rest, like Brazil’s, are subordinate central banks. That is why they want the autonomy of the Central Bank of Brazil, so that the subordination is complete.

It is worth remembering that BIS and its bodies define not only economic policies, but social policies (education, health, social security and social assistance, among others), which must be implemented worldwide. Also that in recent decades it has shown a great concern with the aging of the population and its impacts on the world economy, ordering pension reforms worldwide (https://auditoriacidada.org.br/conteudo/artigo-bis-fmi-g10-ordenam-reforma- da-previdencia-nos-paises/).

At the present moment, when whole populations all over the world are called to quarantine, to stay at home and only go out if extremely necessary, we intensify our prayers and seek to send positive energies to the people we love and to all mankind, especially to a large part of the population that does not have any condition to follow specialists’ recommendations. Most of them either have no home or live in tiny houses, with no potable water. Many do not have jobs or any kind of income. So, if they stay at home, they might starve to death. If they receive help from the government, they might go hungry too, because what is offered to them is not enough at all.

The coronavirus invites us to go further, to make a profound reflection: What world do we want for ourselves, our families and future generations? What security does mankind have in a system where one is constantly blackmailed by government officials and major media at the service of the financial system?

To feed this system, practically everything was privatized. Countries, in general, are completely dominated by the international financial system. Bankers control governments, parliaments and directly or indirectly, the Justice. Rights have been revoked and everything has been changed, legalized, consecrated to serve the “god” market, which only aims at profit Profit The positive gain yielded from a company’s activity. Net profit is profit after tax. Distributable profit is the part of the net profit which can be distributed to the shareholders. . A “god" who gets nervous and terrorizes, causing the dollar and stock exchanges to rise and fall all over the world.

During the crisis of the Asian tigers in the 90’s, it was said that the government’s economic policy was nefarious and unsustainable, because a sneeze anywhere in the world would negatively impact the Brazilian economy.

In the 2008 crisis in the United States, it was said that “When the US sneezes, the rest of the world constipates” (esquerda.net). In 2015, it was said that “If China sneezes, the world gets a cold” (cartamaior.com.br).

What is becoming more and more explicit is that the capitalist system is not the way out for mankind.

We need and are entitled to a new world, to new society, based on solidarity, respect for the lives of people and of the planet, where social rights are guaranteed and the fruits of wealth are shared by all and not appropriated by some, a handful of companies, especially banks, belonging to very few families, that dominate the world, as demonstrated by Swiss mathematicians when analyzing the relationships between the biggest transnationals on the planet (https://www.cartamaior.com.br/?/Editoria/Economia-Politica/Matematicos- revelam-rede-capitalista-que-domina-o-mundo/7/17736).
People around the world are called to reflect and take action, not only in relation to the coronavirus and public health, but the capitalist system. We need to defeat this system and transform society, if we really want to save our families, our planet and mankind.

No to the Debt System!
Immediate suspension of the public debt of municipalities,
states and the Union!
Auditing of public debt with citizen participation!
No to the Capitalist System!
In defense of the planet and life, building a new world is
urgent and necessary!



Lujan Miranda

Auditoria Cidadã da Dívida, Brasil.

Translation(s)

CADTM

COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT

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